InP nanoparticles embedded in SiO2 thin films were prepared by radio-frequency magnetron co-sputtering. We analyzed the structure and growth behavior of the composite films under different preparation conditions. X-ray diffraction and Raman spectroscopy analyses indicate that InP nanoparticles have a polycrystalline structure. The aver-age size of InP nanoparticles is in the range of 3-10 nm. The broadening and red shift of the Raman peaks were observed,which can be interpreted by the phonon confinement model. Optical transmission spectra indicate that the optical absorp-tion edges of the films can be modulated in the visible light range. The marked blue shift of the absorption edge with respect to that of bulk InP is explained by the quantum con-finement effect. The theoretical values of the blue shift pre-dicted by the effective mass approximation model are differ-ent from the experimental results for the InP-SiO2 system. Analyses indicate that the exciton effective mass of the InP nanoparticles is not constant and is inverse relative to the particles radius,which may be the main reason that results in the discrepancy between the theoretical and the experi-mental result. We discussed the possible transition of the direct band gap to the indirect band gap for InP nanoparti-cles embedded in SiO2 thin films.